Paula Deen has reached a settlement with a former employee who sued the celebrity chef in Georgia for racial and sexual harassment, TMZ said Friday.
A judge dismissed the racial component of Lisa Jackson's lawsuit this month, stating Deen's former restaurant manager had no right to claim racial discrimination because she is white.
Jackson alleged Deen, 66, created a hostile work environment by using the N-word in her presence and expressing her desire to plan a 19th century plantation-style wedding.
Deen admitted in a deposition for the lawsuit she used the racial slur, but later clarified it had been years ago and in reference to an African-American man who robbed her at gunpoint.
The confession sparked a media firestorm and, although Deen apologized for her behavior and insisted she is not a racist, she was fired by the Food Network and lost numerous product endorsement deals.